Concessions and PPPs in. Bosnia and Herzegovina

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1 Bosnia and Herzegovina Concessions and PPPs in Bosnia and Herzegovina Milomir Amovic Commission for Concessions of BiH

2 Bosnia and Herzegovina is a small Balkan country with 4.5 million people and it composed of two entities (RS and FBiH) Republic of Serpska Federation of BiH, it is practically a federation of 10 cantons

3 Concessions and PPPs in Bosnia and Herzegovina content: - Legal framework for concessions and PPPs - Our experience - Next steps

4 Legal framework for concessions and PPPs In year 2002 we have adopted following LAWS: - BiH Law on Concessions (state level) - FBiH Law on Concessions + 10 cantonal laws - RS Law on Concessions in Repubic of Srpska in 2009 adapted the Law on PPPs, but, FBiH and BiH (state level) have no such law on PPPs

5 When adopted, the laws were very similar But, over the time they have changed Now, they are quite different!!!

6 In Bosnia we have a three regulatoty Commission for Concessions as a regulatory bodies - Commission for Concessions of BiH - Commission for Concessions of RS - Commission for Concessions of FBiH (Some cantons also have the Commission )

7 All these tell us about the high fragmention of legislations in BiH (15 laws, many commissions...) This is of course reflected in the practice of awarding contracts

8 Our experience According to legislation we have two procedures for awarding contracts: - awarding by tender procedures - awarding by initiative of the private sector (unsolicited proposal)

9 What this means?? - awarding contracts by of the tender procedures - it is generally known The public sector is preparing feasibility studies, project designs and publishes tender - awarding contracts by initiative of the private sector (unsolicited proposal), initiative provides the private sector (preparing feasibility studies, project designs..)

10 initiative provides the private sector awarding contracts

11 Previous experience in BiH says that mostly applied procedure woz unsolicited proposal In the Republic of Srpska were granted more than 200 concession contracts: -More than 100 contracts in the energy sector -66 contracts in the mining and minerals sector -50 contracts in the agricultural sector - 1 contract for the construction of roads (400km), and it is the most important one

12 Unfortunately, some contracts have been cancelled because they were not well prepared - The most contracts in the energy sector is not realized (only two implemented) - Agreement on the construction of roads not yet started - There are huge problems with banks regarding financing

13 PPP project network of roads-motorway

14 In the Federation of BiH, cantons generally awarded contracts And here the situation is similar, but unfortunately there is no precise data on contracts awarded

15 Bosnia is certainly bellow the curve in this diagram This is a very, very dangerous Bosnia and Herzegovina

16 So we have the results: - Many contracts have been canceled - Many contracts are still waiting - The contract for the construction of roads has not started yet - There are no data abaut contracts made in cantons (of FBiH)

17 In cooperation with SIGMA- OECD, we have prepared a report on the situation in the concessions and PPPs in BiH We also provided recommendations for improving the system of concessions and PPPs

18 Next steps - First, we must develop the legal framework according with the EU and UN practice and legislation - We need to build institutional capacities capable to implement procedures and contracts - We must build a strong center of knowledge that will be a "department store" for all actors in the PPP

19 This is hard to do This is a long-term job For this we need assistance in knowledge and skills in techniques and financial assistance

20 Because of this we are very interested to participate in the work of team of specialist We also participate in the activities of regional initiatives Our goal is to establish a regional body and regional network for PPP projects We talked about this three days ago in Sarajevo

21 In fact we have a great support from the RCC (Regional Council for Cooperation) And other countries in the region (Serbia, Macedonia, Montenegro,Albania) have a similar situation as Bosnia and Herzegovina

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23 I hope that we will have your support in this So, I suggest next joint meeting to be held in BiH (Banja Luka or Sarajevo)

24 END Thank you for attention Milomir Amovic Commission for concessions Bulevar Srpske vojske 13 Banja Luka Tel , Fax ,